US Investors Back Off as Asia Seizes Buying Opportunities Amid Negative Coinbase Premium

Interest in Bitcoin and crypto is reportedly waning among traders and investors in the United States, while buying pressure appears to be rising in Asia.

A clear signal of declining demand in the US is reflected in the Coinbase premium, which has been negative over the past week and for most of November. This premium indicates the price discrepancy of Bitcoin or other crypto assets traded on US exchanges versus those on major Asian platforms like Binance.

“This typically signals that US spot demand is lagging behind the rest of the market,” noted an analyst known as ‘Kyledoops’ on Sunday.

“We’re seeing reduced institutional buying, a softer risk appetite, and a generally cautious approach from capital. It’s not panic, but it’s clear that US flows have not reentered the market.”

Selling in America, Buying in Asia

The Coinbase premium serves as a sentiment barometer for both retail and institutional demand across regions. A positive premium indicates strong buying pressure from US investors, often a reflection of institutional interest due to Coinbase’s widespread use.

The Coinbase $BTC premium has been negative for seven consecutive days, approximately -0.04% according to Coinglass.

“Typically, this indicates that U.S. spot demand is falling behind the broader market,” the analyst said.

“There’s less aggressive institutional buying, a softer risk appetite, and capital is being more cautious.”

A negative premium often suggests weakening demand among American investors, who may be selling or showing less buying enthusiasm compared to their counterparts in Asia. This can also reflect institutional hesitance, as the exchange serves as a stand-in for institutional trading activity.

Year-end trends are also influencing market behavior as institutions rebalance their portfolios, take profits, and engage in tax-loss harvesting as the fiscal year concludes. This phenomenon is somewhat typical for December but seems more pronounced this year, in contrast to behavior seen in Asia, where strong buying activity is visible.

“The US and the EU are selling Bitcoin as if there’s no tomorrow… but Asia is buying,” remarked the analyst known as ‘No Limit’.

They shared data visualizing aggressive buying movements among Asian traders during their trading hours, using price dips as valuable buying opportunities, contrary to the hesitation observed in the US.

Historical Trends Recurring

This pattern isn’t new, as similar dynamics were noted in 2019, March 2020, and late 2022. Historically, Western selling has been followed by accumulation in Asia, which often leads to price rebounds following Asia’s lead.

The past weeks have also seen frequent liquidation events causing crypto price declines in late trading sessions on US Sundays, followed by subsequent accumulation in Asia on Monday mornings.

“The same story surfaces each time: The West sells first, Asia quietly accumulates, and prices subsequently move in Asia’s direction.”